Agenda Item #12.2
For Council Meeting of: April 25, 2023
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: ALAN ALTON, CHIEF FINANCIAL OFFICER
SUBJECT: APPROVAL OF A PURCHASE ORDER FOR TWO (2) BANDIT 12XP DRUM-STYLE WOOD CHIPPER TRAILERS WITH CAL-LINE EQUIPMENT, INC., UTILIZING THE PRICING FROM THE SOURCEWELL COOPERATIVE AGREEMENT NUMBER 050119-BAN
AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Transportation and Public Works and Finance Departments that the Council, by resolution: approve a cooperative procurement purchase utilizing the pricing from the Sourcewell Cooperative Agreement Number 050119-BAN; and 2) authorize the issuance of a Purchase Order for two (2) Bandit 12XP drum-style wood chipper trailers with Cal-Line Equipment, Inc., Vancouver, Washington for a total amount not to exceed $131,067.66.
EXECUTIVE SUMMARY
Purchasing has received Purchase Requisition Number R162213 from the Transportation and Public Works (TPW) Department for the purchase of two (2) Bandit 12XP drum-style wood chipper trailers from Cal-Line Equipment, Inc. (Cal-Line) utilizing the City’s standard purchase order terms and conditions with the pricing from the Sourcewell Cooperative Agreement Number 050119-BAN.
BACKGROUND
Under the City’s guidelines for the replacement of fleet assets, the TPW Fleet Maintenance Division selects an asset for replacement when it has reached the end of its cost-effective life cycle. These assets have met the replacement criteria using a 15-point replacement program, an industry standard to predict when best to sell an asset. Repair costs, age, and utilization are considered in the point calculation performed by our Faster Fleet software system. Both of the current City assets have surpassed their useful life and are scheduled for replacement.
The purchase of the two wood chipper trailers will replace City assets #42501 and #42502 (2005 Bandit Chippers) used by Recreation Park Maintenance staff.
PRIOR CITY COUNCIL REVIEW
Not applicable
ANALYSIS
The price schedule through the Sourcewell Cooperative Contract 050119-BAN provides a 12% discount off the list price for the specified equipment. Cal-Line Equipment, Inc. is the nearest Sourcewell-authorized vendor able to access the awarded contract.
Santa Rosa City Code Section 3-08.160 allows for cooperative purchases when advantageous to the City. Based on the pricing the City obtains under the Sourcewell solicitations and the specialized nature of the equipment for purchase, TPW and Purchasing staff consider it advantageous to the City to use the cooperative purchase.
Sourcewell Cooperative purchasing is “Procurement conducted by, or on behalf of, one or more Public Procurement Units” as defined by the American Bar Association Model Procurement Code for State and Local Governments. All contracts are subject to periodic business reviews throughout the contract term to ensure compliance.
Sourcewell is authorized to establish competitively awarded cooperative purchasing contracts on behalf of itself and its member agencies. Sourcewell follows the competitive contracting law process to solicit, evaluate, and award cooperative purchasing contracts for goods and services. Sourcewell exclusive contracts are offered to its members with one nationally leveraged volume purchasing discount that agencies may not obtain through a single competitive process. Agency members obtain volume discount pricing and additional cost savings by eliminating the need for a competitive process.
Upon approval by Council, a Purchase Order with the City’s standard terms and conditions will be issued for the equipment in the amount identified above. The Purchase Order will reference the City’s standard Purchase Order Terms and Conditions, Sourcewell Contract, and the quote provided by Cal-Line Equipment, Inc. The total cost includes sales tax, standard warranty, and delivery. Cal-Line’s quote or use of Sourcewell cooperative pricing does not include special terms or conditions or otherwise modify the City’s standard terms.
FISCAL IMPACT
Funds for this operational expense have been allocated in the FY 2022-23 budget under the Transportation and Public Works Department - E & R Replacement - Key 300106-5584. Approval of this action does not have a fiscal impact on the General Fund.
ENVIRONMENTAL IMPACT
This action is exempt from the provisions of the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3) and 15378 in that there is no possibility that the implementation of this action may have significant effects on the environment, and no further environmental review is required.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Resolution
PRESENTER
Zac Brand, Fleet Superintendent
Brandalyn Tramel, Purchasing Agent
APPROVAL OF A PURCHASE ORDER FOR TWO BANDIT 12XP DRUM-STYLE WOOD CHIPPER TRAILERS PAGE 3 OF 3